Stimulus or Sedative?

By Thomas Sowell,National Review

 Obama’s economic sedative

Abraham Lincoln once asked an audience how many legs a dog has,if you called the tail a leg? When the audience said “five,” Lincoln corrected them,saying that the answer was four. “The fact that you call a tail a leg does not make it a leg.”

That same principle applies today. The fact that politicians call something a “stimulus” does not make it a stimulus. The fact that they call something a “jobs bill” does not mean there will be more jobs.

What have been the actual consequences of all the hundreds of billions of dollars that the government has spent? The idea behind the spending is that it will cause investors to invest,lenders to lend,and employers to employ.

That was called “pump priming.” To get a pump going,people put a little water into it,so that the pump will start pumping out a lot of water. In other words,government money alone was never supposed to restore the economy by itself. It was supposed to get the private sector spending,lending,investing,and employing.

The question is:Is that what has actually happened?

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1 comment to Stimulus or Sedative?

  • Cabby - AZ

    Another splendid article by Thomas Sowell,who understands the
    economy like none other and has the ability to express his opinions
    very clearly!

    Everyone,consumer,seller,lender……is very uncertain as to the
    economic future. There is a complete lack of confidence,which
    is certainly not conducive to business or investment activity.

    This condition can all be laid at the feet of President Obama and
    his Democratic Congress and their socialist policies.

    Something has to be done. The problem is:Can we hold together
    as a nation until November? With the help of God we can and we must.

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